• Research shows only four out of 10 Americans can correctly answer questions about common financial topics
• Just one out of four millennials can pass the same five-question test of their financial savvy
• New videos in English and Spanish from Ford Credit will help consumers make smart decisions about one of their biggest purchases: vehicles

DEARBORN, Michigan, April 21, 2016 – Many Americans need more financial knowledge to make smart decisions. Ford Credit is stepping up to help with short videos on car financing.

Only 24 percent of millennials – and just four out of 10 Americans overall – can correctly answer four or five questions about common financial matters, according to research¹ from the FINRA (Financial Industry Regulatory Authority) Investor Education Foundation.

“We’re making it easy for people to understand automotive financing by providing the straightforward information they need to make good decisions about one of their biggest purchases – a vehicle,” said Krista Conyers, Ford Credit Marketing director. “For example, the ‘What is Credit?’ video compares a credit score to a grade on a school report card.”

The three new videos – the first in a series – help consumers understand credit, compare buying and leasing, and explain what they need to know when a lease ends. The videos are available in Spanish and English on the Ford Vehicles YouTube channel: youtube.com/user/fordowner.

• “What is Credit?” provides basic information about getting and using credit, including explaining credit scores and credit reports.
• “Buy or Lease” helps viewers understand each method so they can make the best choice for their needs.
• “Lease End” tells consumers what to expect when their lease contract comes to an end, including the vehicle inspection, and the decision to buy the vehicle or return it to the dealer.

The videos are designed to appeal to millennials, about 80 million Americans.

“Millennials want information delivered in quick bursts, so each video is about three minutes. There is even more information for viewers – or anyone – at fordcredit.com,” Conyers said. Ford Credit will release more videos about automotive financing in the future.

Ford Credit’s online tools, available in Spanish and English, help consumers understand, access, choose and maintain credit, calculate a budget and estimate their car payment.

Ford Credit also supports credit education through the American Financial Services Association (AFSA) Education Foundation at afsaef.org, Americans Well Informed on Automobile Retail Economics (AWARE) at autofinancing101.org, and the Federal Reserve Bank of Chicago’s Money Smart initiatives. Ford Credit employees deliver credit education presentations in their own communities across the nation.

The five financial questions¹ many Americans struggle to answer are:

1.    Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow?

A.    More than $102 (correct answer)
B.    Exactly $102
C.   Less than $102
D.   Don’t know
 

2.    Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After one year, how much would you be able to buy with the money in this account?

A.    More than today
B.    Exactly the same
C.   Less than today (correct answer)
D.   Don’t know
 

3.    If interest rates rise, what will typically happen to bond prices?

A.    They will rise
B.    They will fall (correct answer)
C.   They will stay the same
D.   There is no relationship between bond prices and the interest rate
E.    Don’t know
 

4.    A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest paid over the life of the loan will be less.

A.    True (correct answer)
B.    False
C.   Don’t know
 

5.    True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.

A.    True
B.    False (correct answer)
C.   Don’t know
 

¹ “2012 National Financial Capability Study,” FINRA Investor Education Foundation, online survey, July-October 2012, www.usfinancialcapability.org